If Controllable Margin Is $300,000 and the Average Investment Center

question 116

Multiple Choice

If controllable margin is $300,000 and the average investment center operating assets are $1,000,000, the return on investment is

• A) .33%.
• B) 3.33%.
• C) 10%.
• D) 30%.

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Definitions:

Materials Requisitions

Documents used to request and track the transfer of materials from inventory for production or other uses within a company.

Work in Process Inventory

Items that are currently being manufactured but have not yet reached completion.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product, directly contributing to its production.

Service Firms

Companies that provide intangible products or services to customers, as opposed to tangible goods.